The Analytical Overview of the Main Currency Pairs on 2017.09.15

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.18818

Open: 1.19178

% chg. over the last day: +0.29

Day's range: 1.19008 – 1.19292

52 wk range: 1.0341 – 1.2069

At the moment, an ambiguous technical pattern has been developed on EUR/USD. The euro is testing the "mirror" resistance level of 1.19300. The nearest support is at the round level of 1.19000. Investors adopted a wait-and-see attitude before the publication of important economic reports from the US. We recommend opening positions from the key levels.

The news background on 2017.09.15:

- The balance of trade in Eurozone at 12:00 (GMT+3:00);

- Statistics on retail sales in the US at 15:30 (GMT+3:00);

- The volume of industrial production in the US at 16:15 (GMT+3:00).

The EUR/USD quotes have fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram has begun to rise and moved to the positive zone, which indicates the power of buyers.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also signals the purchase of EUR/USD.

Trading recommendations

Support levels: 1.19000, 1.18500

Resistance levels: 1.19300, 1.19850

If the statistics from the US turns out to be positive, the bearish sentiment may prevail on the EUR/USD currency pair. The target movement level is 1.18500.

The alternative may be the growth of the EUR/USD quotes to the level of 1.19850.

When tracking positions, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.32078

Open: 1.33949

% chg. over the last day: +1.42

Day's range: 1.33815 – 1.34496

52 wk range: 1.1450 – 1.3447

The Bank of England, as expected, left the key interest rate unchanged at 0.25%. At the same time, the Central Bank said that due to a significant increase in the consumer prices in the near future, the question of raising the interest rate may be brought up. These comments caused a significant demand for the pound. The growth of the GBP/USD quotations exceeded 200 points. At the moment, the key trading range is 1.33850-1.34500. We expect economic reports from the USA.

The news background on the economy of Britain is calm today.

The price is above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has fixed in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator has reached the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.33850, 1.33000, 1.32000

Resistance levels: 1.34500

If economic reports from the US prove to be strong, further growth of the GBP/USD quotations is possible. The movement is tending to the round level of 1.35000.

An alternative may be the correction of the GBP/USD currency pair to 1.33850-1.33500.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.21728

Open: 1.21601

% chg. over the last day: -0.08

Day's range: 1.21524 – 1.21880

52 wk range: 1.2414 – 1.3795

Since the beginning of this week, USD/CAD is in a sideways trend. The technical pattern is still ambiguous. At the moment, the key support and resistance levels are 1.21400 and 1.22200, respectively. The market is waiting for additional drivers. The Canadian dollar is supported by the growth of oil quotes.

We recommend paying attention to the news background on the US economy.

The price tests 50 MA, which currently acts as a rather strong dynamic resistance.

The MACD histogram does not provide accurate signals. The indicator has fixed near the 0 mark.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/CAD.

Trading recommendations

Support levels: 1.21400, 1.20700

Resistance levels: 1.22200, 1.23000

If the statistics from the US will be optimistic, we recommend considering buying USD/CAD. The target level of movement is 1.22500-1.23000.

Alternatively, USD/CAD may drop to support level of 1.20700.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 110.483

Open: 110.235

% chg. over the last day: -0.49

Day's range: 109.552 – 110.785

52 wk range: 99.53 – 118.67

Today, in the Asian trading session, USD/JPY held a round level of 110.000, which caused the continuation of the bullish sentiment. The trading instrument has the potential for further growth. At the moment, the currency is testing the key resistance of 110.750. We recommend paying attention to the news line and the US government bonds yield.

There are no important economic reports from Japan today.

Indicators point to the power of buyers. The price is above 50 MA and 200 MA.

The MACD histogram has begun to rise and has moved to the positive zone, which signals the growth of USD/JPY.

Stochastic Oscillator is located in the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/JPY.

Trading recommendations

Support levels: 110.000, 109.300

Resistance levels: 110.750

We expect further growth of the USD/JPY currency pair. If the price fixes above the level of 110.750, we recommend looking for entry points to the market to open long positions. The movement is tending to 111.250-111.500.

Alternative option. If the statistics from the US turns out to be weak, it is necessary to consider selling USD/JPY. The immediate goal for profit-taking is the round level of 110.000.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.